British bid-target ITV has poached BBC chairman Michael Grade as its new executive chairman, a major coup for the ailing commercial broadcaster and a heavy blow to the BBC.

Analysts said yesterday the charismatic 63-year-old was one of very few people who could rejuvenate Britain's biggest commercial television group, which has lost audience, advertisers and its chief executive in the last year.

Earlier this month, cable operator NTL said it was considering making a bid for ITV, before its rival UK pay-TV firm BSkyB stepped in and blocked the move by buying a 17.9 per cent stake for almost one billion pounds. NTL's biggest shareholder Richard Branson has appealed to the media regulator and the UK government to intervene, saying the move by James Murdoch's BSkyB was bad for competition.

Mr Branson welcomed Mr Grade's appointment and said he hoped it augured a better creative future for terrestrial TV. BSkyB said it had no prior knowledge of the appointment and Mr Grade said he would view BSkyB like any other investor.

Numis analysts forecast the bid speculation would evaporate and described the appointment as a potential masterstroke.

"ITV is one of the great British brands and the job now is to move it forward," Mr Grade told reporters. "There's a lot to do, I'm enormously excited about getting closer to the creative process. I just can't wait to get started."

The BBC said it was disappointed to be losing its chairman and said the announcement was a surprise. Mr Grade was appointed as BBC chairman in 2004 for a four-year contract, joining the renowned broadcaster at a time of turmoil following its furious row with the government over the corporation's reporting in the run-up to the Iraq war.